文档介绍：CHAPTER10THEINVESTMENTFUNCTIONINBANKINGANDFINANCIALSERVICESMANAGEMENTGoalofThisChapter::AdvantagesandDisadvantagesMeasuringExpectedReturnsTaxes,Credit,andInterestRateRisksLiquidity,Prepayment,andOtherRisksInvestmentMaturityStrategiesMaturityManagementToolsChapterOutlineI. Introduction: TheRolesPerformedbyInvestmentSecuritiesinBankPortfoliosII. InvestmentInstrumentsAvailabletoBanksandOtherFinancialFirmsIII. PopularMoney-MarketInstrumentsA. TreasuryBillsB. Short-TermTreasuryNotesandBondsC. FederalAgencySecuritiesD. CertificatesofDepositE. InternationalEurocurrencyDepositsF. Bankers'AcceptancesG. CommercialPaperH. Short-TermMunicipalObligationsIV. PopularCapitalMarketInstrumentsA. TreasuryNotesandBondsB. MunicipalNotesandBondsC. CorporateNotesandBondsIII. OtherInvestmentInstrumentsDevelopedMoreRecentlyA. StructuredNotesB. SecuritizedAssetsC. StrippedSecuritiesIV. InvestmentSecuritiesActuallyHeldbyBanksV. FactorsAffectingtheChoiceofInvestmentSecuritiesA. ExpectedRateofReturnB. TaxExposure 1. TheTaxStatusofStateandLocalGovernmentBonds 2. BankQualifiedBonds 3. TaxSwappingTool 4. ThePortfolioShiftingToolC. Interest-RateRiskD. CreditorDefaultRiskE. BusinessRiskF. LiquidityRiskG. CallRiskH. PrepaymentRiskI. InflationRiskJ. PledgingRequirementsVI. InvestmentMaturityStrategiesA. TheLadderorSpaced-MaturityPolicyB. TheFront-EndLoadMaturityPolicyC. TheBack-EndLoadMaturityPolicyD. TheBarbellStrategyE. TheRateExpectationsApproachVII. MaturityManagementToolsA. TheYieldCurveB. DurationVIII. SummaryoftheChapterConceptChecks10-1. Whydobanksandinstitutionschoosetodevoteasignificantportionoftheirassetstoinvestmentsecurities?